Articles Posted in Hurricane Sandy workers

In our last post, we discussed the basic theories and history behind tipping, as presented in the Accounting Degree Review’s comprehensive infographic, “Tipping in the United States.” Today, we will discuss the current state of affairs for tipped employees and how they can ensure they receive fair compensation for their work, including seeking advice from reputable New York employment attorneys.

As the infographic indicates, tipped employees only need to earn $30 per month in tips to “qualify” for the subminimum wage, which is currently frozen at $2.13 per hour. However, for full-time employees, $30 in tips on top of the subminimum wage paid by the employer still amounts to much less than minimum wage.

In addition, most states offer employers a “tip credit,” which reduces the wages they must pay to tipped employees based on the tips they receive. The law also stipulates that when employees don’t make enough between tips and their hourly wages to equal minimum wage, the employer must make up the difference. However, many employers do not comply with this law, even when staff or other entities discover the discrepancy.

Hurricane Sandy, the storm that hit the East coast over a year and a half ago, continues to impact families and individuals, some of whom still badly need assistance. Shockingly, one of the country’s most illustrious aid agencies may not be allocating relief resources effectively.

According to a recent report, the Red Cross has been less than forthcoming regarding how it spent over $311 million the agency raised in the aftermath of the 2012 hurricane. When nonprofit news source ProPublica submitted a Freedom of Information Act (FOIA) request to learn about the aid organization’s use of Sandy relief funds, the Red Cross quickly hired a law firm to help block the request.

The Red Cross claims certain aspects of their financial records qualify as “trade secrets,” which would pose potential harm to the organization if made public. The Red Cross claims to have spent – or to have committed to spend – $98 million on casework and individual assistance, $33 million on relief products, $50 million on housing, $94 million on food and shelter, and $25 million on emergency vehicles and healthcare. If those allocations happened, then why is the aid organization holding back? What, exactly, in their records are they worried about people seeing?